The Indian rupee fell to a one-week low on Thursday as a jump in oil prices and little progress in U.S.-Iran talks raised concerns that inflation could prompt further global rate hikes. Dollar sales by state-run banks, likely on behalf of the Reserve Bank of India, limited losses and kept the rupee above 96 per dollar. The currency ended at 95.9550 per dollar, down 0.2% for the day. Earlier in the day, the currency had slipped to 95.96, its lowest level since September 17. The Iran conflict has weighed on emerging market currencies as elevated oil prices fan inflation in energy-importing economies and strain fiscal health. A surge in global bond yields has added to the pressure with U.S. Treasury yields hitting multi-year highs as traders added to wagers on rate hikes by the Federal Reserve. The dollar index was a tad higher at 101 while Asian currencies weakened between 0.1% to 0.5%. Indian equities, meanwhile, endured their worst single day drop since early July. Despite the headwinds from oil prices and higher global bond yields, near-tenor volatility expectations for the rupee have remained subdued with the 1-month implied volatility gauge hovering around the 4% mark. Sterling hit the lowest level in almost three months against the dollar and edged down versus the euro on Thursday, as investors singled out the pound as a key casualty of the dollar repricing sparked by Federal Reserve’s hawkish shift last week.The British currency is on track for its fourth straight daily fall against the greenback, which is hovering around two month-highs. Sterling was down 0.10% at $1.3222, its lowest level since July 1. It dropped about 1.25% since Monday while the U.S. dollar index rose around 0.90%. he dollar steadied near a two-month high on Thursday after a sharp rally fuelled by expectations of additional Federal Reserve interest rate hikes following strong economic data and a hawkish shift in rhetoric. Meanwhile, the Swiss Franc fell against the euro and the ?dollar after the Swiss National Bank left rates unchanged, as expected, while reiterating its willingness to be active in the foreign exchange market. Previously it said it had an increased willingness to intervene in the foreign exchange markets to counter excessive franc strength. The Swiss Franc dropped 0.32% against the dollar , reversing an earlier rise, and hit 0.828, its lowest level since May 2025. The Swedish currency was flat at 9.9070 versus the dollar. It reached 9.9350, the lowest level since April 2025, before the central bank decision to keep key interest rate unchanged at 1.75%, as expected, while flagging stronger growth and the risk that inflation will pick up in the months ahead. Investors closely watched energy prices and geopolitics with Brent crude slightly up after jumping overnight as Iran and the United States remain far apart on how. The greenback tends to strengthen when oil prices rise, as investors often sell currencies of energy-importing economies such as the euro and yen, whose trade balances are more vulnerable to higher crude costs. The US dollar index , which measures its value against a basket of six major currencies, was roughly unchanged at 101.12, after rising 0.56% to 101.23 on Wednesday, its firmest since July 29. The dollar's strength sent the euro to a two-month low of $1.1369. Japanese Finance Minister Satsuki Katayama said the principles underpinning the coordinated Japan-US currency intervention in July remain intact, signalling Tokyo is prepared to act jointly again if needed. The remarks briefly supported the yen, though sentiment remained fragile after last week's Bank of Japan rate hike to a 31-year high failed to convince investors that a faster tightening cycle is in store. The dollar was little changed versus the yen at 158.38 after earlier ?reaching 158.59, its highest level since September 3. The latest rise in oil came as doubts grow again about the chance of a US-Iran deal, despite the talks at the UN this week. Reports have also suggested that Trump is considering a possible export ban on US-produced diesel. www.eforexindia.com......